Shimla: Amid the uproar over the Himachal Pradesh High Court's order to attach Himachal Bhawan in Delhi over unpaid dues, Chief Minister Sukhvinder Singh Sukhu has pointed to past policy decisions as the root of the problem.
He assured that his government is reviewing the matter and will take necessary action.
Responding to the media queries here today, Sukhu said, “I haven’t yet read the High Court’s order in detail, but I’ve been briefed about it,” said CM Sukhu.
“This issue traces back to the 2009 as per HP Power policy, where an upfront premium was mandated for setting up power projects.
At that time, a reserve price of ₹10 lakh per megawatt was set, and companies bid accordingly. These decisions, taken under the previous leadership, are now creating complications.”
The Chief Minister highlighted the growing number of arbitration cases as a significant concern.
“We are facing arbitration decisions that are extremely worrisome, as they often overlook key legal aspects. In one such case, our government had to deposit ₹64 crore following an arbitration ruling.
These legacy issues are piling up, and we’re left to address their consequences,” he explained.
CM Sukhu assured that his government is taking the matter seriously.
“I have directed officials to analyze these arbitration orders and take appropriate action wherever required. If any orders adversely affect the state’s interests, we will intervene to safeguard public welfare,” he stated.
As the controversy unfolds, CM Sukhu’s remarks highlight the long-standing policy and legal challenges plaguing the state.
"Our government is committed to transparency and accountability in managing the state's resources.
The power project in question, allotted to Moser Baer under the 2009 energy policy, had a reserve price of ₹10 lakh per megawatt. The project was awarded through competitive bidding, but unfortunately, Moser Baer never started operations.
The previous BJP government, under Jai Ram Thakur, did nothing to address this issue during its tenure, leaving the state's economy in shambles.
We are now dealing with the arbitration proceedings arising from this lapse. While the arbitration amount of ₹64 crore is not a big issue for the state, we must focus on the legal aspects to ensure the state’s interests are protected.
Our government has been proactive in managing finances. This month alone, we disbursed ₹3,000 crore to government employees and officers.
While speaking to the media today, Chief Minister Sukhvinder Singh Sukhu assured that the state government would take strong legal steps to address the Himachal Pradesh High Court's order to attach Himachal Bhawan in New Delhi.
He explained that the dispute stems from the 2009 energy policy, under which the upfront premium was non-refundable if a project was deemed financially unviable.
M/s Moser Baer Projects had paid an upfront premium of ₹64 crore for the Seli Hydel Project (320 MW) but later surrendered the project in 2017, claiming it wasn't viable.
The government forfeited the premium as per the policy.
Slamming Leader of Opposition Jai Ram Thakur, CM Sukhu said the BJP government failed to act on adverse court rulings, costing the state dearly.
He highlighted how his government overturned an adverse verdict in the Adani case, saving ₹280 crore. Sukhu also accused Thakur of distributing ₹5,000 crore in pre-election freebies instead of protecting the state’s resources and questioned why the previous government didn’t hire top advocates if it cared so much about legal issues.
"Jai Ram Thakur's government showed little interest in securing the state's interests during its tenure but is now quick to criticize," Sukhu said.
Depositing ₹64 crore for arbitration is not an issue, but such decisions should always be made with due diligence and legal scrutiny.
Moving forward, we will ensure that any such disputes are handled responsibly to protect the interests of the state."
